Benefit Summary 2020

DEFERRED COMPENSATION

401(a) Deferred Compensation Retirement Plan Enrollment into the 401(a) deferred compensation plan is available to you immediately upon your appointment to a management or mid-management position with Kern Medical. When you chose to defer pre-tax dollars into your 401(a) retirement plan, Kern Medical will match your contribution at 100% up to 6%of your compensation, plus an additional 50% match on the next 6% of your pay for the same biweekly pay period. Therefore, if you contribute at least 12% of your pay, you will receive the total available match of 9% of your pay. All match dollars will be deposited to the 401(a) plan. No employee deferments will be directed to this plan. Matching Contributions and any earnings on those contributions are tax- deferred until the money is withdrawn. Distributions are subject to ordinary income tax. You vest in Kern Medical’s matching contributions over a 5 year period with a 20% grading each year.

457(b) Deferred Compensation Retirement Plan Enrollment into the 457(b) deferred compensation plan is available to you immediately upon your appointment to a full-time position with Kern Medical. When you chose to defer pre-tax dollars into your 457(b) retirement plan, Kern Medical will match your contribution at 100% up to 6% of your compensation*. Your and Kern Medical’s contributions to the plan and any earnings they generate are always 100% vested. MatchingContributions andanyearnings on those contributions are tax-deferred until the money is withdrawn. Distributions are subject to ordinary income tax.

NEW EMPLOYEE PREMIUM PAY (ONGOING BENEFIT) Permanent employees are eligible for a New Employee Premium Pay equal to 6% of your base salary .* The six percent biweekly premium pay is calculated by multiplying your hourly rate times the amount of hours the you are paid during the pay period, including hours worked and PTO but excluding overtime. *Most employees hired after October 27th, 2007 are eligible.

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